If consumers are less willing and able to pay for each level of output than they were previously, then apparently:
a. demand has increased
b. supply has increased.
c. demand has decreased.
d. there has been a movement down along the demand curve.
c
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Why do mortgage companies begin to require larger down payments from their borrowers when housing prices begin to fall?
What will be an ideal response?
Suppose Bev's Bags makes two kinds of handbags-large and small. Bev rents an industrial space where she keeps the fabric, the industrial sewing machine, her measuring board and cutting shears, extra needles, thread and buttons, and labels. Which of the following would be considered a variable cost of this company?
A. The rent B. The fabric C. The cutting shears D. None of these would be considered a variable cost.
Compared to a perfectly competitive firm with the same cost structure, a monopoly firm will charge a:
a. higher price and sell more. b. lower price and sell more. c. higher price and sell less. d. lower price and sell less. e. similar price and sell the same.
At the beginning of the 1980s under Chairman Paul Volcker, the Fed
a. stressed control of interest rates over control of the money supply b. did not seem to favor either control of the money supply or of interest rates c. changed the emphasis between controlling the money supply and controlling the interest rate depending on the state of international trade d. stressed control of the money supply over control of the interest rate e. controlled whichever target that seemed to be important at the time